“Tata Steel Europe performance was affected by lower deliveries and a sharp decline in European spreads to an unsustainably low level. As a result, our consolidated adjusted Ebitda dropped to Rs 1,038 crore,” Tata Steel executive director Koushik Chatterjee said.
On a standalone basis, the Indian operations posted a net profit of Rs 411 crore, compared with Rs 1,570 crore a year earlier.
Mumbai: India’s largest steelmaker, Tata Steel, reported a consolidated net loss of Rs 4,609 crore for the June quarter, as operations were hit by the Covid-19 pandemic and lockdown, and its European units continued to be in the red.
It had a year earlier posted a net profit of Rs 695 crore. Consolidated turnover fell to Rs 24,289 crore in the June quarter from Rs 35,947 crore a year earlier.
“Tata Steel Europe performance was affected by lower deliveries and a sharp decline in European spreads to an unsustainably low level. As a result, our consolidated adjusted Ebitda dropped to Rs 1,038 crore,” Tata Steel executive director Koushik Chatterjee said.
“In Europe, spreads are at unsustainably low levels but are expected to improve going forward. We are also engaged with respective governments in the UK and Netherlands for their support,” managing director TV Narendran said. It had received short support from both governments in the past quarter.
On a standalone basis, the Indian operations posted a net profit of Rs 411 crore, compared with Rs 1,570 crore a year earlier. In the previous quarter, it had posted a Rs 563 crore loss. Revenue from operations declined almost 30 per cent on year to Rs 25,288.51 crore.
“During the quarter, we recalibrated our operations and our sales across geographies in line with underlying regulatory and market conditions. It had an adverse impact on our volumes and our margins,” Narendran said. However, due to a lack of domestic demand, it focused on export markets and generated free cash flows despite adverse market conditions, he added.
Get Unlimited Access to The Economic Times
